Stockland issues earnings warning
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Property group Stockland has warned its earnings will fall by 15 per cent if the Victorian market fails to show any improvement.
The company said on Tuesday there had been no change in the Victorian housing market since October, and it appears unlikely any improvement will be seen soon.
That will lead to Stockland's earnings per share in the 2012/13 year falling by 15 per cent, the lower end of its previous guidance of a fall in earnings per share in the range of 10 to 15 per cent.
Stockland's residential chief executive Mark Hunter said market uncertainty and a lack of consumer confidence were continuing to present challenging market conditions, particularly in Victoria.
But the company still expects to maintain its full year distribution to shareholders at 24 cents per security.
"Although the challenging market is impacting our performance in FY13, we have made good progress in diversifying our residential portfolio and we are meeting the market with more affordable products," Mr Hunter said in a statement.
"We have demonstrated our continued focus on larger, master-planned communities, which present better economies of scale and greater potential to deliver stronger returns over time."